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Unleash Prosperity Hotline
Issue #1297
07/01/2025
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1) The Death of Green Energy?

That's what almost every news outlet is saying about the Senate tax plan. ABC News worries that the plan will "crush wind and solar power." The Financial Times warns that the GOP bill "delivers a fatal blow" to wind energy.

On Capitol Hill, Oregon Senator Ron Wyden raged that the Republican plan "is a death sentence for wind and solar production" and "a massacre for the industry."
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We find the hypocrisy here to be towering. The green energy lobby has been telling us for decades now that wind and solar are the energy sources of the future and that the federal subsidies will be temporary and profitability is "right around the corner."

Now 50 years later, we're told that ending the gravy train of taxpayer handouts means the certain death and destruction of the industry. This is despite hundreds of billions already handed out. Now the industry wants nearly $500 billion of subsidies over the next decade - or 20 times more than the oil and gas industry will receive.
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Our view is that any industry that will fail without pipelining hundreds of billions of tax dollars into its coffers is an industry that we can live without.
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2) Even With GOP Reforms, Medicaid Spending Still Explodes

The liberals and media are portraying the Medicaid reforms (work requirements and eligibility verifications) as cruel and regressive.

This chart from CEI shows the Medicaid trajectory turned sharply upwards when Biden made COVID-era increases permanent. The reconciliation bill helps bend the spending curve slightly, but nowhere near where it was:
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Senator Rick Scott has proposed an amendment that would address the biggest cost driver that the latest version of the bill leaves intact.

Currently, for every dollar of state Medicaid spending on children, pregnant women, the disabled, and the elderly, the federal government matches with $1.33 - but for an able-bodied, working-age adult, the federal match is $9 per dollar of state spending.

As we’ve shouted out before in the HOTLINE: this perversely incentivizes states to waste money on health care. No wonder the program costs keep escalating.
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Under Rick Scott’s amendment, new enrollees in Medicaid starting in 2031 (why not sooner?), the overmatch would be eliminated.

Senator Thune supports the amendment ([link removed]) and says he doesn't know how Republicans "couldn't be in favor of it." Senator Josh Hawley opposes it ([link removed]) .
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3) Quote of the Day - Socialism Is Good For You

Here’s a little peek into the mindset of Zohran Mamdani, 33, the "Democratic Socialist" who is now the frontrunner to be the next mayor of New York.

"Ultimately, the reason I want to increase these taxes on the top 1%, the most profitable corporations, is to increase quality of life for everyone, including those who are going to be taxed."

—Zohran on “Meet the Press” June 29

This guy not only believes in socialism and higher taxes, he thinks it's good for its victims. Dangerous.

Did we mention that state's own tax auditors estimate that the top 1% in income in the Big Apple Pay 48% of the city's income tax.
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4) Get Ready for a Nuclear Comeback in Blue State America!

With the subsidies for unreliable wind and solar projects likely to dry up as part of the Big Beautiful Bill, nuclear plants may fill the void.

Last week, New York Governor Kathy Hochul (D) ordered her state's power authority to contract the state's first nuclear power plant in 35 years. Hochul admitted the state's renewable energy buildout is faltering as reliability concerns mount.
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Hochul's announcement came only three days after Texas Gov. Greg Abbott signed two nuclear-related bills: one for research into nuclear power and another to help develop the state's nuclear workforce.

Michigan and Pennsylvania have announced plans to re-open shuttered nuclear power plants in the next few years.

Nationally, President Trump has set a goal of quadrupling the country's nuclear capacity to 400 gigawatts by 2050.

Caution: We are all for a nuclear renaissance. But please no government subsidies to the nuclear industry. That's what killed green energy.
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5) More Evidence that DOGE Is Draining the Swamp

Elon Musk has returned to Tesla's Texas headquarters and his DOGE analysts are no longer constant visitors camping out at federal agencies.

But that doesn't mean Elon’s efforts didn't help change the culture of waste, fraud and abuse that is endemic inside the Beltway.

Federal contractors - private “Beltway Bandit” companies that lap up more than $800 billion a year - are still getting rich, but the pace has slowed down and so has the hiring. Axios reports that "job postings by these employers plummeted this year" at the top 25 federal contractors.
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Job listings from federal contractors - the biggest firms are Lockheed Martin, UnitedHealth, Booz Allen and Honeywell - are down 15% since President Trump took office. Compare that to job postings at all employers, which are down only 0.5%.

Score one for Elon's DOGE team.
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6) New York’s Latest Experiment

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